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Builders and building materials

Grafton Group trading recovers after October profit warning

Adjusted operating profit for the year to 31 December to come in at £202mln, as opposed to initial forecasts of £193mln

Grafton Group PLC (LON:GFTU) has upped its profits expectations by 5% just months after its shares were hammered by a profit warning.

After October’s warning, the FTSE 250-listed building materials group now says trading in November and December was better than anticipated and adjusted operating profit in the year just ended will be £202mln against an earlier forecast of £190mln.

Merchanting revenue in the Netherlands has recovered while Ireland has continued to grow steadily. The UK. Though. remains weak.

Group revenue was £2.6bn, up 2.7%, though this was still below Liberum’s forecast for the year, though the broker said the uptick in operating profit was encouraging.

Shares rose 5% to 905p on Tuesday morning.

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